1. 1. Why the address? Why is it moving to the top of the agenda? I submit, that neither
posts nor mailers pay enough attention to the address, address databases, or hygiene, or
especially, the problems caused thereby‐especially undeliverable as addressed mail (UAA).
Unfortunately, the very availability of address data and address systems is an issue, one of
major significance. We’ll get to that in a moment.
1

2. 2. In some respects, we need to look at the address differently, as here. I’ve rebranded the
Address like the Canadian cereal Shreddies. All I’ve done is turn it 45 degrees and give it a
colored background, and we see it differently. We can also see that we can accurately call
other identifiers addresses, such as my postal code alone, which locates my very home, my
mobile number, sort of a portable address, and the IP address of my new website
www.globaladdress.org. And a business or other entity needing to keep records involving
human beings, might use any or all of these in its files to link data and keep it in order.
2

3. 3. For current purposes, why should the address be at the top of the agenda?
Because of …..
B f
E‐substitution ‐ letters and catalogues and magazines are all suffering from this problem, depriving
consumers and posts both of physical communication – sometimes ill‐advisedly. For example, a
recent study in the USA on membership marketing found that organizations with 5000 or more
members overwhelmingly find success at member recruiting with mail promotions. The best answer
to the substitution promoters is the ROI argument, and UAA reduces ROI
Environmental concerns – there is so much myth and emotion around trees and the use of paper
and the carbon footprint. We’re all familiar with these. With a hamburger having something like 10
d th b f t i t W ’ ll f ili ith th With h b h i thi lik 10
times the carbon footprint of a letter‐ delivered‐ one wonders why mail is under such scrutiny.
Again, UAA contributes to that problem.
E‐commerce and the Internet – Here there is a positive influence because, remarkably, e‐commerce
makes the address more valuable, and broadens its use. I’ll tell you why
Finally, Globalization, which includes a concern for human rights, which I’ll touch on, and despite
the recession, despite 30% pay raises for labour in China, the process continues apace. In
h i d i 30% i f l b i Chi h i I
economics, our global interdependency, the spread of jobs world‐wide out of the industrialized
world, think call centers in India, all of this makes communication in ALL media more common and
the address more important, and at the end of the day all of these reasons point to one thing
Return on investment (ROI) and profitability. To preserve mail, and to save postal systems, the
address must be taken into account, and the UAA issue must be faced head‐on.
3

4. 4. Consider what an address is, and what it is needed for. Addresses are: an essential tool
for economic and social development, which we take for granted.
In India, without an address, you won’t be recognized as an individual, citizen, or customer.
You can’t get a mobile phone, open a bank account, buy a commuting bus pass, send your
child to school. In India, the Post Office now will issue you a “proof of address” card so you
can participate in modern life.
And addresses are used by emergency services, for planning where to put schools and
hospitals, credit checking. Companies use them for fraud prevention, when I use my credit
hospitals credit checking Companies use them for fraud prevention when I use my credit
card to buy gasoline the pump asks me for my postal code, verifying that it is indeed my
who is using the card, since a thief is unlikely to know the billing address for the card.
4

5. 5. As I mentioned, an address is a critical business tool, used as an identifier in databases,
as in this sample of a file from Priority Pass and the International Airline Passenger
Association which shows the results of some file maintenance, merging two files together
and checking for duplicates by reference to the address. When you are making a one
million piece mailing at the cost of perhaps $2.50 each, a 2% duplicate rate would mean
wasting $25,000, at least. It could be the difference between a successful mailing and a
decision to migrate to online marketing
5

6. 6. Address systems are a key national economic transportation and communications
infrastructure, like a water or road or electric system, or Tokyo’s subway. . These are all
network systems, and addresses are both locations on the network and instructions to
postal systems. Without them, there is chaos.
Address systems are a critical component of national and international communication and
trade – even more so with ecommerce growth.
6

7. 7. With ecommerce, and globalization, we are seeing a deluge of parcels. Expensive and
inexpensive items ordered from websites and carried world‐wide by the posts. Most of the
new traffic is internal to countries, of course, but there is an increasingly large amount of
traffic between countries. In Europe, Schengen has had an impact and the IPC E‐Parcel
Group has profited from it, and the Kahala Group has enjoyed growth in other markets.
According to the recent study of the global letters and parcels markets done
for the UPU by Adrenale cross‐border express and parcel carriage worldwide has gone up
by more than 50% in both volume and value since 1998.
by more than 50% in both volume and value since 1998
Consistent with that, earlier this year at Triangle’s conference in Miami,
Pranab Shah, head of International at USPS stated:
“In 2002, 50% of the international revenue was single piece letters, 10% bulk letters, and
40% parcels and express. Last year, revenues came predominantly from parcels and
express – 72%! Single piece letters have plunged to 18%, and bulk letters remains constant
at 10%.”
From 2008 to 2009, small packet volumes of DVD’s and CD’s and similar
volumes have exploded from 48 to 56 million on the import side and from 12 to 38 million
export!
In the UK research by PostCode Anywhere and Interactive Media Retailers
In the UK research by PostCode Anywhere and Interactive Media Retailers
Group found The UK online e‐commerce market produced sales of goods and services
valued at £50bn in 2009 which we estimate results in over 1.1 billion parcels and packets
for delivery to UK and overseas consumers.
7

8. 8. So even if the consumer now has an email address, he still needs a postal address to receive a parcel, and
those consumers to be in the developing world need addresses also. And as businesses we care and should
those consumers to be in the developing world need addresses also And as businesses we care and should
care for all those good reasons‐human rights, development, environments. And the posts and the businesses
need to care for a bedrock reason.
Economics. A bad address resulting in an undeliverable piece of mail or a parcel UAA is wasted money, and
expensive or impossible to correct;
The US data company Melissa Data estimates that the cost of a returned or undeliverable marketing letter is
more than $3: say a bulk rate of 35 cents to mail it, $1.50 for the paper/envelope/printing/allocated design
cost, and $1.15 to manage the returned piece.
In a 25,000 piece mailing, of which 10% go undelivered, that s $7,500 in wasted money. . What about the
In a 25 000 piece mailing of which 10% go undelivered that’s $7 500 in wasted money What about the
sale that is lost or the customer service effort that fails? And 10% is not unlikely in the US since 15% of our
population changes address every year, and so a database could deteriorate at 1.25% a month – 8 months =
10%.
What about magazines? Speaking at the UPU’s Global Addressing Summit, Marco Provazi
of International Magazine Service, which provides direct entry magazine and newspaper services for
publishers throughout Europe, estimates that 5% of all magazines are returned to him, and 20% returns in
some countries is not unusual. Why subscribe if you don’t get the magazine? Why not just read it online?
And in the parcel business it is even more expensive. At the Global Addressing Summit, the
company Intermec estimated that just the cost of misdirection and redelivery of a parcel cost the delivery
company Intermec estimated that just the cost of misdirection and redelivery of a parcel cost the delivery
company £3.40. In the UK, Postcode Anywhere estimates the cost of missing postcodes alone costs mailers
£147 million/year and that the cost of an incorrect address to a merchant, in refunds, redirection,
replacement, stockage, and redelivery is €25.5 each.
This was recently confirmed by IMRG in its “Valuing Home Delivery Review” study in which
it found that the cost to merchants, delivery agents and consumers per year in the UK amounts to
somewhere between £790 and £1 billion per year. Andrew Starkey of IMRG speaking at the Summit
estimated the loss to UK business for international parcel delivery failures/delays at about £150 million per
year.
So the Internet doesn’t makes a postal address irrelevant. In fact, globalization makes the problem worse...
S h I d ’ k l dd i l I f l b li i k h bl
8

9. 9….because untold hundreds of millions of consumers and citizens don’t have addresses.
This shows the results of a survey by the UPU’s Direct Mail Advisory Board of the world’s
posts in 2007. Out of 213 countries only 63 have delivery point databases, 40 address
verification and correction capability, 56 change of address systems and 53 will redirect
mail. Data expert Graham Rhind of the Netherlands calculates that some 5% of the world’s
population lives in countries without address systems, or 350,000,000.
In my own view, to have an identifiable address usable for governmental and
In my own view to have an identifiable address usable for governmental and
economic purposes, you need a delivery point database and systematized address
allocation system which permits storage of addresses in a computerized database. Only 63
countries have such systems, or about 3.3 billion of the world’s 6.8 billion. In short, over
half of the world’s population live pretty much without a residential address and are not
effectively reachable by businesses for marketing purposes.
9

10. 10. So what’s going on in this subject area
a. the Consultative Committee of the Universal Postal Union and the Direct
Mail Advisory Board have been discussing these issues since 2007. We started with UAA
mail and data and are expanding out from there. Our most recent effort was the Global
Addressing Summit at the UPU and you can find the 15 excellent presentations from that
conference at my website.
b. . Euradin (Euradin Address Infrastructure) conference, a much more
b Euradin (Euradin Address Infrastructure) conference a much more
technical level, but important and Europe‐wide promoting European address harmonization
of definitions, registration and access.
c. . It’s so important that both the UPU and the UN have committed large
resources to the subject: Address For Everyone will hold the first of three conferences on
the subject in November of this year in Berne. This project has substantial UN agency
support from all development agencies and interestingly the International
Telecommunications Union – after all, a telephone or mobile phone number, like an e‐mail
or ip address, is an address.
10

11. 11. So going forward: what’s the agenda, and where are we going? These are the issues
which my new association, the Global Address Data Association will be focusing on for the
benefit of postal users and postal systems.
Undeliverable as addressed mail (UAA)‐ causes and solutions
COA systems – best practices, structures
Cross‐border access to data
Pricing
Performance standards
Performance standards
Property rights
Electronic addresses
Barcoding technologies and developments
Lat/long role
11

12. 12. Lastly, the business vision that the business community active at the UPU has
articulated is this one. In fact, if you don’t know this, the UPU has in its PostCode database,
most of those first two assets. Once there are address systems, change of address systems
are critical for data hygiene for everyone, business and government. For example, 15% of
US population changes address every year, which means typical address database
degenerates at about 1.25% per month. In fact, 70% of the UAA in the US is due to
consumers failing to tell the USPS that one has moved. This is even a more complex
problem here in Europe where people often move across borders, and access to COA
problem here in Europe where people often move across borders and access to COA
systems across borders is nearly impossible.
In fact being able to catch those changes can be the difference between
profit and loss on a mailing and whether the mailer even uses mail again, and so we return
to where we began – it’s all a question of economics. If a seller can use the post profitably,
he will. If he can not, he’ll use another communications medium.
12

13. Yes, addresses are everyone’s job, and it’s a never‐ending job. Address hygiene, keeping
one’s files accurate, with proper address forms, is a thankless never‐ending task. We’ll hear
about some tools to do that and especially why it is so important.
For mailers and businesses, it is all about return on investment
For consumers, it is economic accuracy and reaching friends
For the Posts, it means continued use of the mail and keeping customers
For society and government, it is keeping citizens engaged, served, connected, and creating
a wealthier and healthier society.
a wealthier and healthier society
So it’s never “only an address”.
13

14. 14